Can I Choose to Keep My Car After Totaling It?

For most, car accidents are emotionally-draining experiences. But with proper insurance coverage, they do not have to be financially-draining. Learn your options for keeping a totaled car, and how to do so without committing fraud with your insurance company.

Local Junk Car Buyers Indianapolis Indiana 317-608-2188
Local Junk Car Buyers Indianapolis Indiana 317-608-2188

When is a Vehicle Totaled?

A vehicle is considered “totaled” when the cost to repair it back to its previous condition is more than the current value of the vehicle. Insurance companies and car manufacturers have stringent procedures and requisites in place to determine these values. With a totaled vehicle on your hands, you may feel like you are at a total loss; however, if you have insurance, you should be just fine depending on the level of coverage your policy provides.

With full coverage insurance, you can expect to receive money from your insurance provider to repair the damages, or to settle the note with the lien holder and cover the cost of a new vehicle of equal current value. If you have liability coverage, you will mostly likely receive less from your insurance provider and have to pay more out of pocket.

Uninsured or Underinsured Drivers

If you do not have insurance, your best option is to junk the vehicle for cash and apply your profit toward a new car purchase. You can do this by contacting a trusted junk car buyer and requesting a free phone estimate. If you accept their offer, they will usually come pick up your vehicle at no extra charge! Only reputable and highly professional junk car buying companies offer this kind of service.

Insurance Claims and Totaled Cars

If your insurance company marks your car totaled, they will take your vehicle and give you a check for the current value. However, if you want to keep your totaled vehicle, you must inform your insurance company. In this case, you can expect to receive less money for the vehicle.  If you were to accept money from the insurance company, and then keep your vehicle, you could be found guilty of insurance fraud depending on the specifics of your situation.

Some policies allow people to keep their totaled vehicle, while others include language that does not permit this at all. It is important to talk to your insurance provider and learn the details of what your policy covers and what it does not. Do this before an accident occurs so that you make better decisions regarding what you can do with a totaled car.

Did you total your car, but it is not covered by enough or any auto insurance? Contact GC’s Junk Cars at 317-608-2188 to sell your junk car for cash on the spot to one of our Indianapolis junk car buyers! We even offer free junk removal!

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What You Need to Know About Liability Car Insurance Coverage

If you have just bought or received a new car you plan on driving, you will need car insurance. How much car insurance coverage you need depends mostly on what the state requires, but also your personal preferences, namely budget. Most states, including here in Indiana, require that all drivers maintain automotive liability insurance coverage at all times. This is known as the state-minimum for car insurance coverage.

Continue reading to learn some important facts about car insurance liability coverage that can help you better understand your options.

Totaled Car Buyers Indiana 317-608-2188
Totaled Car Buyers Indiana 317-608-2188

Liability Car Insurance Coverage Facts

Automotive liability insurance coverage is a type of car insurance coverage that only covers another person’s bodily injuries and property damages. The owner of the liability insurance policy is not covered. Let’s dive into this little further.

There are two types of liability car insurance coverage: bodily injury liability coverage and property damage liability coverage. Drivers are required to have both kinds of coverage at all times to operate a motor vehicle, legally.

▶ BODILY INJURY LIABILITY COVERAGE (BI) = Bodily injury liability car insurance covers another driver’s injuries, including their medical expenses and hospital bills.

▶ PROPERTY DAMAGE LIABILITY COVERAGE (PD) = Property damage insurance coverage pays for another driver’s automotive repairs, or for a new vehicle if the car is totaled.

Coverage Limits for Liability Car Insurance Policies

Although automotive liability car insurance covers another driver’s bodily injuries and property damages, you could still be responsible for paying out-of-pocket if the total cost exceeds your policy’s coverage limit. The state does set a minimum limit, but when you are purchasing car insurance, you can choose your own limit.

Let’s say you cause an accident, and the total cost of the of the driver’s medical expenses and property damages totals out to $25,000. Your insurance carrier will cover this cost so long as your coverage limit is at least that amount. If your coverage limit was only $20,000, you would be responsible for paying the remaining $5,000 out-of-pocket.

Your Bodily Injuries and Vehicle Damages

Under an automotive liability insurance policy, your own bodily injuries and property damages are not covered. The only parties covered are other drivers harmed in the accident. For this reason, it is strongly recommended to add collision insurance coverage to your liability insurance policy. Collision coverage would cover your bodily injuries and property damages in the case of an accident, but it would also come with a coverage limit. You can choose your coverage limit based on your budget and how comfortable you feel paying out-of-pocket in the case of an accident.

Comprehensive Insurance Coverage

Collision automotive insurance coverage does not cover other types of vehicle damages outside of motor vehicle accidents, such as a tree falling on your car or hail damage. If you want these types of damages covered, you will need comprehensive automotive insurance coverage.

Have you totaled your vehicle but only have liability insurance coverage, leaving you with no means to pay for repairs? Contact GC’s Junk Cars at 317-608-2188 to sell your junk car in Indianapolis, Indiana for cash on the spot! We provide free junk car removal, so we come to you!

Related Posts:

How You Should Prepare for Selling a Junk Car
General Qualities of a Total Loss Car
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GC’s Junk Cars
GC’s Junk Cars 317-608-2188